First of all, what is a tax return? It’s a method of declaring and paying tax on any untaxed income you’ve earned.
A Self-assessment tax return is something that you do as a sole trader, but the process is different if you’re a limited company.
- You owe tax based on your earnings each tax year. The tax year runs from 6th April to 5th April, so you should record what you make between these dates every year.
- By 5th October 2023, you will have to register for Self Assessment
- By 31st January 2024, you must file your tax return
Any self-employed income goes on your tax return, mainly how much you’ve earned, and what kind of income it is.
What can I expense as a self-employed courier?
Anything that you buy for work can be deducted from your end-of-year total earnings, That way, you’re only paying tax on your profits. What counts as an expense? Here are a few examples:
- Parking costs (but not fines)
- Accounting costs
- Car lease payments
- Bike equipment (only if you deliver by bicycle)
- Mileage
- Insurance and repairs
- Breakdown cover
- Work phone bill payments (if you use it exclusively for work)
- Road safety equipment
If you have one of the Shell Fuel Saver cards, you will have all of your expenses easily stored within the app.
Does my vehicle affect the tax I owe?
Yes, you can claim these reliefs:
Mileage Allowance:
- Cars – 45p per mile for first 10,000 miles then 25p
- Vans – 45p per mile for first 10,000 miles then 25p
- Motorbikes – 24p per mile
- Bikes – 20p per mile
Make sure you keep receipts (VAT receipts if possible) so that you have evidence of the spend. HMRC may not ask you for them but it helps to have in the case that they do!
